March 24 (Reuters) - FedEx FDX.N said on Tuesday it had launched a same-day delivery service with last-mile delivery software company OneRail, as retailers and logistics firms race to speed up order fulfillment.

The service, called FedEx SameDay Local, lets customers choose narrower delivery windows, including two-hour and end-of-day options. FedEx said it links customers to a national network of more than 1,000 delivery providers through a system that matches orders with the nearest vehicle and driver.

The move comes as companies across the sector invest in faster fulfillment and stronger last-mile networks to meet rising customer demand for quicker and more flexible delivery.

Earlier this month, Amazon AMZN.O expanded its fast-delivery offerings by rolling out one‑hour and three‑hour shipping in markets across the U.S., amid intensifying competition from rivals including Walmart WMT.O and Target TGT.N, which are also expanding same‑ and next‑day delivery.

FedEx said the service broadens its ability to support customers across the delivery chain, from long-haul transportation to local fulfillment.